As Texas residents age, many turn their focus to how they will fund their retirement years. In the case of those who have gone through divorce, additional financial pressures may make it challenging to retire as planned. The following statistics on divorce and retirement come from a wide range of sources, but all underscore the importance of making wise decisions both during and after a Texas divorce. When it comes to planning for the future, the division of retirement benefits is just the beginning.
Research focused on divorce rates has yielded different outcomes. However, taken as a whole, studies show that nearly half of all marriages will eventually end in divorce. Other studies suggest that divorce among people over the age of 50 has doubled in the years between 1990 and 2010.
When a couple decides to divorce, a number of additional financial burdens are taken on, including the need to set up two households with the same income that formerly supported one. Both men and women are affected financially, though it appears that women may face particular challenges when it comes to achieving financial stability after a divorce. In fact, data collected via survey asserts that women who divorced after the age of 50 were more likely to remain in the workforce in full-time positions between the ages of 50 and 74.
Planning for retirement is important; for spouses in Texas who are at or nearing retirement age, it is equally important to make wise decisions during a divorce. By structuring a settlement that goes beyond the division of retirement benefits and serves one’s long-range financial needs, spouses can move beyond a divorce with a degree of financial stability. That can make it easier to restructure retirement plans in the years to follow.
Source: Bloomberg, “Divorce Is Destroying Retirement“, Ben Steverman, Oct. 17, 2016